Constellation Brands finalises sale of mainstream wine labels to The Wine Group  

USA – Constellation Brands has officially completed the sale of its mainstream wine brands to California-based producer The Wine Group (TWG), as part of its ongoing strategic pivot toward a premium-focused portfolio. 

The transaction, initially announced in April 2025, includes the transfer of well-known labels such as Woodbridge, Meiomi, Robert Mondavi Private Selection, Cook’s, SIMI, and J Rogét sparkling wine.  

With this divestment, Constellation’s retained wine portfolio now primarily comprises offerings priced at US$15 and above. 

While financial terms of the deal remain undisclosed, the sale significantly expands TWG’s footprint.  

The company acquires three production facilities—located in Lodi, Monterey County, and the SIMI winery in Healdsburg, California—along with approximately 6,600 acres of owned and leased vineyards across the state.  

Around 500 employees associated with these operations have also joined The Wine Group. 

John Sutton, CEO of The Wine Group, stated, “The addition of highly-regarded brands – along with new sites that expand our in-house innovation capabilities – further empowers us to deliver the range of offerings consumers want, for all types of occasions.” 

Constellation Brands CEO Bill Newlands noted that the company is now better positioned to align with consumer preferences for premiumisation.  

“We are pleased to have completed this transaction and look forward to executing against our repositioned portfolio, focused exclusively on the higher-end,” he said. 

Constellation confirmed that its fiscal year 2026 outlook, as well as projections for fiscal 2027 and 2028 issued in April 2025, remain unchanged following the transaction. 

The company had also initiated a review of its organisational structure when it first disclosed the sale, aiming to secure annual cost savings of approximately US$200 million.  

The review is expected to conclude by the end of February 2026. 

In the quarter ending February 2025, Constellation recorded a 1% rise in overall sales.

However, its wine and spirits segment saw a 6% decline in net sales, largely due to weaker U.S. wholesale performance and consumer sentiment, particularly among Hispanic demographics. 

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